Tax Professional - latest Issue
Volume 2016, Issue 28, 2016
Author Sibusiso ThungoSource: Tax Professional 2016 (2016)More Less
We are slowly approaching the end of the filling season for taxpayers that are non-provisional taxpayers. The Centre of Tax Excellence (CoTE) is aware of the challenges that members and taxpayers (your clients) are experiencing when it comes to refunds and SARS' failure to communicate about the stopper placed on refunds.
Author Lynley MainSource: Tax Professional 2016, pp 5 –7 (2016)More Less
Tax evasion is by no means a new phenomenon, but as economic pressures exert an ever-growing burden on businesses, individuals, large corporations and multinationals continue to find sophisticated methods of securing extra revenue by making use of tax havens to lower their tax obligations. Leaks such as the infamous Panama Papers and HSBC Swiss leak have served to heighten awareness of what is widely known as Base Erosion and Profit Shifting (BEPS). However, what's becoming increasingly clear is that more needs to be done to make offshore tax havens less murky.
Source: Tax Professional 2016, pp 8 –9 (2016)More Less
Tax practitioners are often requested by taxpayers (individuals and businesses) to act as tax representatives. In fact, many tax practitioners accept such requests as it represents a lucrative stream of income. Often tax practitioners believe that once the tax assignment is completed, then their responsibilities as the tax representative ceases. However, when the tax practitioner is called upon by SARS to cough up the cash to settle the taxpayer's debt, there is shock and disbelief!
Source: Tax Professional 2016, pp 10 –13 (2016)More Less
Very often a taxpayer (usually a parent) - a connected party - and who may not be a beneficiary, donates or sells an asset to a family trust. The sale of the asset to a family trust is often via a loan account. This article focuses on the sale of an asset to the trust via loan account at less than market-related interest rates.
Source: Tax Professional 2016, pp 14 –16 (2016)More Less
Although the rules for calculating the estimate of taxable income have been with us for little less than three years, the rules still present tax practitioners with difficulties, and which, as a result, give rise to an understatement-of-estimates penalties. This article focuses on the method required for the calculation of the estimates of taxable income. This requires a calculation of the basic amount when estimating taxable income for payment of provisional taxes.
Source: Tax Professional 2016 (2016)More Less
Renewable energy is seen as the long-term future to the planet's energy demands as a result of the increasing effects of climate change due to the long-term use of fossil fuels. South Africa, in particular, has certain obligations as a party to the United Nations Framework Convention on Climate Change (UNFCCC) to ensure the reduction of greenhouse gas emissions and to incentivise investments in low carbon, clean energy.
Making sense of SA's tax and labour laws around labour brokers and personal service providers : tax lawAuthor Rob CooperSource: Tax Professional 2016, pp 18 –19 (2016)More Less
The worlds of tax law and labour law are complex, ever-changing and closely intertwined. That means that South African organisations need to consider what legislation in each of these fields says about concepts such as remuneration, employees, and bonuses. In other words, your finance team needs to know something about labour law as it handles your taxes, while your human resources team needs to understand where labour and tax regulation intersect.
Proposed amendments to the rules dealing with the taxation of employee-based incentive plans : income taxSource: Tax Professional 2016, pp 20 –22 (2016)More Less
The Draft Taxation Laws Amendment Bill of 2016 was released for public comment on Friday 8 July (the '2016 TLAB'). It proposes certain amendments to the rules currently contained in the Income Tax Act No. 58 of 1962 (the 'Act') dealing with employee-based incentive plans.
Mixing pulp does not make it a fiction - farmers need to account for 'work in progress' on their tax returns : tax newsAuthor Esther Van SchalkwykSource: Tax Professional 2016 (2016)More Less
A wine farmer recently discovered that 'produce held and not disposed of' includes the pulp of grapes that were harvested and delivered to a wine cooperative, where it was mixed with the pulp of other members. The farmer had retained an undivided share in the pooled pulp held by the co-operative which was to be sold as wine on behalf of its members.
Author Gerhard BadenhorstSource: Tax Professional 2016, pp 24 –25 (2016)More Less
It is common practice for suppliers to deliver the goods that they supply at the premises of their customers on the customer's request. The suppliers then either deliver the goods themselves or they contract the services of third parties to deliver the goods on their behalf, for which they charge a delivery fee. The question that arises is whether the supplier should charge value-added tax ("VAT") on the delivery fee, particularly where the supplier acquires the services of a third party to deliver the goods, and merely recovers the delivery fee from the customer charged by the third party.
Author Marcus StellohSource: Tax Professional 2016, pp 26 –27 (2016)More Less
Author Xolani JadezweniSource: Tax Professional 2016 (2016)More Less
Tax payable by South Africans working abroad is impacted by whether they will remain tax resident of South Africa. A natural person is a 'resident' if he or she is either ordinarily resident in the Republic or meets the physical presence test. South African tax residents are taxed on worldwide income in South Africa. A nonresident is subject to tax in South Africa on income from a South African source.
Author Anton LockemSource: Tax Professional 2016 (2016)More Less
On July 20 2016, the National Treasury announced its proposed changes to the Special Voluntary Disclosure Programme (SVDP) in respect of offshore assets and income. The proposed changes are an attempt to simplify the process of giving non-compliant taxpayers the opportunity to voluntarily disclose offshore assets and income before the new global standard for automatic exchange of information between tax authorities begins in 2017.